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Thursday, March 1, 2001 | Print this story

Clinton Fund Raiser Refuses to Testify on Pardons

From Reuters

     WASHINGTON--The former finance chairwoman of the Democratic National Committee refused today to testify to Congress about President Bill Clinton's controversial pardon of financier Marc Rich.
     Appearing before the House Government Reform Committee, Beth Dozoretz cited her constitutional right against self-incrimination in refusing to answer questions about whether Clinton pardoned Rich in return for campaign contributions from Rich's ex-wife Denise.
     Rich fled to Switzerland 17 years ago to avoid prosecution on racketeering, wire fraud, income tax evasion and illegal oil trading charges and received a pardon from Clinton on his last day in office on Jan. 20.
     Dozoretz was recruited by Rich's attorney Jack Quinn to lobby Clinton on the pardon. Quinn, a former White House counsel under Clinton, has testified that Dozoretz spoke to Clinton about Rich at least twice.
     Appearing after Dozoretz left the room, former Clinton chief of staff John Podesta said that he and two other aides called to testify - former White House counsel Beth Nolan and adviser Bruce Lindsey - had all opposed the pardon and told the president of their opinion on Jan. 16.
     "The staff informed the president that it was our opinion that the pardon should not be granted," he said.
     UNANIMOUS VIEW
     Podesta said Nolan told him in early January that, "It was the unanimous view of the counsel's office that the appropriate remedy was not a presidential pardon."
     "I learned either then or subsequently that Mr. Lindsey was of the same view. I strongly concurred in that judgment," Podesta said.
     The House panel subpoenaed the three aides in its widening investigation of possible influence peddling or links between campaign donations and the pardon of Rich and others on Clinton's last day in office. Denise Rich gave more than $1 million to Democratic causes and $450,000 to the Clinton presidential library.
     Apart from a separate criminal investigation, the Rich case has also drawn the attention of the New York state tax authorities, who announced today they were suing Rich for income tax evasion.
     The New York State Department of Taxation and Finance said it wanted $137 million owed on money Rich made in the 1980s while in control of two companies that admitted fraud involving illegal oil trading.
     In his opening statement at the committee hearing, Republican Committee Chairman Dan Burton, a long-time Clinton critic, said the former president's last-minute pardons set a double standard.
     "The appearances that are being created here are obvious. If you have friends in high places you can get around the law. It makes it look like we have one system of justice for the rich and powerful and another system of justice for all the rest of us," he said.
     Burton said he was sorry that neither Denise Rich nor Dozoretz were prepared to testify.
     DEMOCRATS DEFEND CONSTITUTIONAL RIGHT
     Democratic members on the committee defended the constitutional right not to testify and said efforts to keep investigating Clinton needed to stop sometime.
     "We could spend months investigating the details of all of President Clinton's pardons but I seriously question whether it makes sense for us to conduct another redundant investigation," said Rep. Henry Waxman of California, the ranking Democrat on the committee.
     Committee investigators got a brief peek Wednesday at the names of those donors who contributed more than $5,000 to the library and won an agreement from Clinton attorney David Kendall for a broader review of those donors that investigators suspect might be linked to the pardon of Rich or others.
     The committee had subpoenaed information on all donors contributing more than $5,000 to the Clinton library fund, and threatened library officials with contempt if they did not comply.
     Kendall resisted the request, citing privacy concerns, but agreed to allow investigators to see more information, including dates and total donation amounts, on donors selected by committee investigators.
     The deal means the committee will not call Skip Rutherford, the library foundation's president, to testify today.
     Among the other cases being probed by Congress are those of a convicted swindler and a major cocaine dealer who paid some $400,000 to Hugh Rodham, Clinton's brother-in-law, to advance their bids for clemency.
     Rodham ultimately gave the money back after Clinton and former first lady Hillary Rodham Clinton complained.

 
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